Viewpoint column + Short-selling | The Guardianhttps://www.theguardian.com/business/series/viewpointcolumn+shortselling
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Stock lenders and sort-sellers carry on as usualhttps://www.theguardian.com/business/2011/aug/31/stock-lending-short-selling-city-reform
The challenge of tackling the City fails when the rewards of success are too great<p>There seems to be little appetite in parliament for a wholesale reform of the City. While the high-street banks are subjected to intense debate, stockbrokers and fund managers pursue profits away from the spotlight. Even the revelations that many investment firms can lend up to 100% of their holdings to short-sellers – whose mission is to drive down the value of those investments – is unlikely to provoke any action.</p><p>Research into the practice of stock lending shows some investment firms are retaining up to 40% of the fees they earn for lending some, or possibly all, of the shares in particular funds. When many other avenues for making money have dried up, the substantial fees that can be generated by stock lending are just too good to ignore. Short-sellers need to borrow shares from funds to make their contracts work. In recent weeks they have been particularly active, as the stock market has headed south. Last month was the worst month for the FTSE 100 since the Greek crisis in May last year and short-sellers will have made big gains.</p> <a href="https://www.theguardian.com/business/2011/aug/31/stock-lending-short-selling-city-reform">Continue reading...</a>Short-sellingBusinessStock marketsWed, 31 Aug 2011 19:40:24 GMThttp://www.theguardian.com/business/2011/aug/31/stock-lending-short-selling-city-reformPhotograph: Shaun Curry/Getty ImagesWhere the money is: traders in the pit of the London Metal Exchange. Photograph: Shaun Curry/Getty ImagesPhotograph: Shaun Curry/Getty ImagesWhere the money is: traders in the pit of the London Metal Exchange. Photograph: Shaun Curry/Getty ImagesPhilip Inman2011-08-31T19:40:24ZViewpoint: Learning the lessons of Boy Plunger of 1907https://www.theguardian.com/business/2008/sep/19/marketturmoil.regulators
<p>The big mystery is about to be solved. We will soon discover whether those dastardly short-sellers and hedge funds contributed to the big falls in banks' share prices.</p><p>The deal for the short-sellers is this: new short positions in financial stocks are now banned in the UK. You can either remove existing positions today, or you can leave them in place and reveal them to the world next Tuesday. If you choose the latter, you will be a tabloid villain on Wednesday.</p> <a href="https://www.theguardian.com/business/2008/sep/19/marketturmoil.regulators">Continue reading...</a>Short-sellingMarket turmoilBusinessRegulatorsEconomicsBankingMoneyHedge fundsThu, 18 Sep 2008 23:01:00 GMThttp://www.theguardian.com/business/2008/sep/19/marketturmoil.regulatorsNils Pratley2008-09-18T23:01:00Z